You read it right. Amazon announced that they will reduce the cost of Kindle to $114 from $139 and introduce ads in this cheaper version.

Amazon.com To Sell Kindle Digital Reader With Ads for $114

Amazon.com Inc., the world’s largest online retailer, unveiled a $114 version of its Kindle electronic-book reader that requires customers to view ads in exchange for getting the lower price. The new device, called Kindle With Special Offers, costs $25 less than the current lowest-priced model, the Seattle-based company said in a statement. It will be available May 3 at Best Buy Co. and Target Corp. stores, in addition to Amazon’s site.